2007-07-19 11:01:09 CEST
2007-07-19 11:01:09 CEST
REGULATED INFORMATION
Cargotec - Half Year financial report
Cargotec s Interim Report for January-June 2007
Cargotec Corporation, Stock Exchange Release, July 19, 2007 at 12:00
p.m. Finnish time
* Orders received during the first half of 2007 totaled EUR 1,864
(1-6/2006: 1,591) million. During the second quarter, orders
received were EUR 949 (4-6/2006: 786) million.
* The order book continued to grow and on June 30, 2007 totaled EUR
2,244 (December 31, 2006: 1,621) million.
* Sales in the first half of the year grew by 13 percent and
amounted to EUR 1,437
(1-6/2006: 1,275) million. Close to half of the sales growth was
organic. During the second quarter, sales were EUR 743 (4-6/2006:
661) million.
* Cargotec completed 12 acquisitions during January-June. The most
important acquisitions were Norwegian Hydramarine and Singaporean
Plimsoll, which together form the MacGREGOR Offshore division.
* Operating profit was EUR 104.1 (1-6/2006: 111.9) million with EUR
46.2
(4-6/2006: 61.0) million attributable to the second quarter.
* Cash flow from operating activities before financial items and
taxes totaled EUR 83.4 (1-6/2006: 113.0) million.
* Net income for the reporting period was EUR 74.9 (1-6/2006: 74.7)
million.
* Earnings per share were EUR 1.17 (1-6/2006: 1.16).
* The number of personnel at the end of the reporting period was
10,962
(June 30, 2006: 7,970). Acquisitions increased the number of
personnel by 1,835 people.
* General market activity is expected to continue healthy and order
intake to grow by close to 20 percent in 2007. Together with the
strong order book this will enable Cargotec to clearly exceed its
growth target this year. Sales growth for 2007 is estimated to be
approximately 15 percent. Cargotec is, in accordance with its
plans, focusing in 2007 on growth and efficiency related
investments, which burden this year's result. The investments are
expected to enable profitable growth as per the five year
strategy. Cargotec's operating profit margin for the remainder of
the year is expected to stay below 8 percent.
Cargotec's President and CEO Mikael Mäkinen:"We are extremely pleased with the continued strong order intake. The
focus on services continues to pay off as the business is growing at
a rapid rate. Many of the development investments initiated are
reflected as costs in the second quarter result. However, I believe
that the coming two quarters will show improved profitability. We are
firmly committed to building a geographically stronger and expanded
presence for our business."
An Analyst and Press Conference:
An analyst and press conference (in Finnish) will be arranged on July
19, 2007 at 2:00 p.m. Finnish time at Cargotec's head office,
Sörnäisten rantatie 23, Helsinki.
An international telephone conference for analysts and investors will
be held at 4:00 p.m.
Finnish time. The presentation material will be available on the
Company's internet pages by 2:00 p.m. Finnish time.
The conference call phone numbers are the following:
+1 866 966 5335 (if calling from the U.S.)
+44 20 3023 4412 (if calling from rest of world)
The telephone conference can also be viewed as a live audio webcast
through the internet pages at www.cargotec.com starting at 4:00 p.m.
Finnish time. The archived webcast will be available on the internet
pages later the same day.
Sender:
Cargotec Corporation
Kari Heinistö
Senior Executive Vice President and CFO
Eeva Mäkelä
SVP, Investor Relations and Communications
For further information, please contact:
Kari Heinistö, Senior Executive Vice President and CFO, tel. +358 204
55 4256
Eeva Mäkelä, SVP, Investor Relations and Communications, tel. +358
204 55 4281
Cargotec is the world's leading provider of cargo handling solutions
whose products are used in the different stages of material flow in
ships, ports, terminals, distribution centers and local
transportation. Cargotec Corporation's brands, Hiab, Kalmar and
MacGREGOR, are market leaders in their fields and well-known among
customers all over the world. Cargotec's sales are EUR 2.8 billion.
The company employs over 10,000 people and operates in close to 160
countries. Cargotec's class B shares are quoted on the Helsinki Stock
Exchange.
www.cargotec.com
Operating Environment
The European market for Hiab's load handling equipment remained
extremely strong during the second quarter in all product groups.
Demand increased particularly in Central and Eastern Europe and in
Russia. The market for Hiab's products in Asia Pacific was good. The
demand in the United States weakened mainly due to the market
downturn in the construction industry. Furthermore, a decline in U.S.
new truck registrations compared to the previous year affected the
demand for Hiab's tail lifts and truck-mounted forklifts. Demand for
services continued healthy particularly in Europe.
Demand for Kalmar's container handling equipment was healthy. Lively
market activity continued despite a somewhat lower number of major
project decisions during the second quarter. Demand for rubber-tired
gantry (RTG) cranes increased in South America and remained stable in
Europe. Demand for reachstackers remained strong while the market for
straddle carriers was below the previous year's level. The market for
terminal tractors in the Americas remained healthy. The heavy
industrial forklift market in the United States weakened slightly in
the second quarter due to a decline in demand in the construction and
forest industry. Demand in Europe remained strong. Demand for
Kalmar's services remained lively in all market areas.
Demand for MacGREGOR's solutions was very strong in all market areas
during the reporting period as lively activity continued in the
shipbuilding industry. Demand for cargo handling solutions for bulk
and general cargo vessels was strong. The number of orders for
particularly ship cranes was high in the second quarter. Demand for
RoRo equipment for PCTCs (pure car and truck carriers) was very good
and orders for container ships also picked up clearly. The market for
offshore equipment was very lively while bulk handling equipment
demand was healthy. Demand for MacGREGOR's services remained stable.
Orders Received
Orders received by Cargotec in the first half of the year totaled EUR
1,864 (1-6/2006: 1,591) million. The value of the orders secured
during the second quarter was EUR 949 (4-6/2006: 786) million.
Orders received, MEUR 1-6/2007 1-6/2006 1-12/2006
Hiab 508 498 946
Kalmar 760 697 1,282
MacGREGOR 597 396 684
Internal orders received -1 -1 -2
Total 1,864 1,591 2,910
Hiab
Of all the orders received in January-June 2007, Hiab accounted for
EUR 508 (1-6/2006: 498) million. The orders received in April-June
2007 totaled EUR 244 (4-6/2006: 232) million.
In the second quarter, Hiab received numerous smaller orders. Despite
the weaker U.S. market situation Hiab received a substantial order
for truck-mounted forklifts. Furthermore, an order for load handling
equipment to be used by the defense forces was received from Canada.
During the reporting period, Hiab received a high number of orders
from Europe and Asia Pacific region. In China a contract was signed
on the delivery of 24 loader cranes to China Railway Construction
Corporation. The loader cranes will be delivered during 2007 to a
railroad construction site between Wuhan and Guangzhou in China.
Kalmar
Of all the orders received in January-June, Kalmar accounted for EUR
760 (1-6/2006: 697) million. The orders received in April-June 2007
were EUR 367 (4-6/2006: 346) million.
In June, Kalmar received an order for ten straddle carriers from MSC
Bremerhaven of Germany and an order for 15 straddle carriers from
Patrick Corporation of Australia. The straddle carriers to be
delivered to MSC Bremerhaven are environmentally friendly EDRIVE®
products equipped with twin-lift spreaders. The straddle carriers of
both MSC Bremerhaven and Patrick Corporation can be fully automated
if necessary. The straddle carriers will be delivered in 2007-2008.
In May, Kalmar received an order for ten E-One RTGs from Saigon
Newport (SNP) of Vietnam. The cranes will be equipped with the
Smartpath® container position verification system and delivered in
the spring of 2008 to SNP's container terminal near the city of Ho
Chi Minh.
In the second quarter, Kalmar received an order for 24 pieces of
container handling equipment from JSC Sea Port St. Petersburg of
Russia. The equipment will be delivered by the end of September 2007.
In the second quarter, the company also received an order for 21
terminal tractors from Turkey. The terminal tractors ordered by
Yliport Container Terminal will be delivered to the Izmit Bay
container terminal near Istanbul in October 2007.
In March, Kalmar signed a contract with the DP World port operator
regarding deliveries of 84 terminal tractors to the Jebel Ali port
near the city of Dubai.
In January, Kalmar signed a contract for the delivery of 12 E-One
RTGs to the Brazilian company Santos Brasil S/A operating in the port
of Santos. The RTGs will be fitted with the Smartrail® automatic
steering and container position verification system developed by
Kalmar.
MacGREGOR
Of all the orders received during the reporting period, MacGREGOR
accounted for EUR 597 (1-6/2006: 396) million. The orders received in
April-June 2007 were EUR 338 (4-6/2006: 208) million.
In June, MacGREGOR received orders for RoRo equipment for 15 PCTCs
and RoRo vessels under construction in Korea. The equipment will be
delivered in 2008-2010.
In June, the company also received an order for eight ship cranes for
heavy loads and eight standard ship cranes from the Chinese shipyard
COSCO Dalian. The order also includes the design and component
delivery for hatch covers. The ship cranes and hatch covers will be
delivered in 2008-2009.
In May, MacGREGOR received an order for four ship board twin cranes
from the Polish-Chinese shipowner Chipolbrok. The units will be the
largest of their kind in the world. The cranes will be delivered in
2007-2008 for four vessels built in the 1990s.
MacGREGOR received during the second quarter orders for 276 ship
cranes from China and India. The ship cranes will be delivered during
2008-2011 for 74 bulk carriers.
Furthermore, orders for 42 ship cranes for vessels to be built in
China and Taiwan were received in the second quarter. The equipment
will be delivered in 2008-2010 for vessels ordered by COSCO of China,
Peter Döhle of Germany and Cido Shipping of Hong Kong. Furthermore,
delivery contracts for ship cranes were signed for 26 bulk ships
ordered by Setaf Saget of France and 12 bulk ships ordered by
Essar/ABG of India. Heavy lift ship cranes will also be delivered for
four general cargo ships ordered by Chipolbrok and eight general
cargo ships ordered by COSCO.
In the second quarter, MacGREGOR signed several contracts for the
delivery of bulk handling equipment. The equipment will be delivered
for vessels transporting cement and iron ore.
MacGREGOR signed a three-year maintenance agreement with the Italian
company Grimaldi Group in the second quarter. The agreement covers
the maintenance of MacGREGOR RoRo systems on board 26 of Grimaldi's
RoRo vessels. The maintenance agreement corresponds to the highest
level of the MacGREGOR Onboard Care concept, Total Onboard Care.
In March, MacGREGOR received substantial orders for RoRo equipment
from several shipyards in Germany, Japan and Croatia. The equipment
will be delivered in 2007-2009 for RoPax vessels and PCTCs.
In the first quarter, MacGREGOR received substantial ship crane
orders, which further increase MacGREGOR's market share in ship
cranes.
Order Book
Cargotec's order book totaled EUR 2,244 (December 31, 2006: 1,621)
million on June 30, 2007. Of the order book, Hiab accounted for EUR
238 (215) million, Kalmar EUR 693 (593) million, and MacGREGOR EUR
1,314 (813) million. Inclusion of the offshore business in
MacGREGOR's figures increased the end of June order book by
approximately EUR 250 million. A considerable part of MacGREGOR's
order book is for delivery in 2008-2012.
Order book, MEUR 30.6.2007 30.6.2006 31.12.2006
Hiab 238 216 215
Kalmar 693 615 593
MacGREGOR 1,314 713 813
Internal order book 0 0 0
Total 2,244 1,544 1,621
Sales
Cargotec's sales for the first half of the year grew by 13 percent
and totaled EUR 1,437
(1-6/2006: 1,275) million. Close to half of the growth was organic.
Approximately EUR 40 million of the growth in the reporting period
was attributable to the sales impact of acquisitions completed during
January-June. The sales impact of acquisitions completed in the
second half of 2006 was over EUR 50 million in January-June 2007.
Sales for the second quarter amounted to EUR 743 (4-6/2006: 661)
million.
Hiab's sales in April-June amounted to EUR 245 (4-6/2006: 237)
million, Kalmar's sales were EUR 330 (309) million and MacGREGOR's
sales EUR 169 (116) million.
Sales, MEUR 1-6/2007 1-6/2006 1-12/2006
Hiab 485 467 914
Kalmar 653 593 1,203
MacGREGOR 300 217 482
Internal sales -1 -1 -2
Total 1,437 1,275 2,597
Sales for services increased by 29 percent on the corresponding
period in 2006 and amounted to EUR 353 (1-6/2006: 274) million, which
is 25 (21) percent of total sales. The increase was particularlyattributable to strong demand for spare parts and maintenance
agreements, as well as completed acquisitions. Services accounted for
15 (14) percent of sales at Hiab, 30 (25) percent at Kalmar, and 28
(27) percent at MacGREGOR in January-June.
Financial Result
Cargotec's operating profit for January-June 2007 was EUR 104.1
(1-6/2006: 111.9) million, representing 7.2 (8.8) percent of sales.
The result was weakened by the growth and efficiency related
investments made during the reporting period. Operating profit for
the second quarter was EUR 46.2 (4-6/2006: 61.0) million, equal to
6.2 (9.2) percent of sales. Hiab accounted for EUR 16.6 (23.4)
million of second quarter operating profit, Kalmar for EUR 24.0
(31.0) million and MacGREGOR for EUR 11.4 (10.2) million.
The operating profit for January-June includes a EUR 2.4 (1-6/2006:
0.9) million cost impact from the purchase price allocation treatment
of acquisitions, with EUR 1.7 (4-6/2006: 0.5) million attributable to
the second quarter. Projects initiated during the beginning of the
year to develop the services business and strengthen the knowledge
base increased the corporate administration costs.
Hiab's second quarter operating profit includes a cost reserve of
approximately EUR 4 million due to the transfer of the of
truck-mounted forklift production in Oude Leije in the Netherlands to
Dundalk in Ireland. The demand for Hiab load handling products in the
U.S. was weaker in the second quarter than in the beginning of the
year. The improved profitability in Europe was not able to fully
compensate for the impact of the U.S. demand. Kalmar profitability
was burdened by higher than expected R&D and operational costs
related to expanding presence in the markets for big cranes and
automated solutions. MacGREGOR's result includes the cost impact from
the purchase price allocation treatment of the offshore acquisitions
included as of the second quarter. MacGREGOR's operational result
developed positively in the first half of the year.
Net income for the period was EUR 74.9 (1-6/2006: 74.7) million and
earnings per share were EUR 1.17 (1.16).
Balance Sheet, Financing and Cash Flow
On June 30, 2007, Cargotec's net working capital amounted to EUR 240
(December 31, 2006: 209) million. Tangible assets on the balance
sheet were EUR 253 (218) million and intangible assets EUR 747 (581)
million.
Cash flow from operating activities before financial items and taxes
for January-June 2007 totaled EUR 83.4 (1-6/2006: 113.0) million and
that for April-June EUR 31.3 (4-6/2006: 72.4) million.
Net debt at the end of the reporting period was EUR 344 (December 31,
2006: 107) million. Total equity/total assets ratio was 40.4 (47.6)
percent while gearing was 39.0 (12.3) percent.
Cargotec had EUR 467 million of committed credit facilities on June
30, 2007. These facilities were unused. The EUR 225 million (USD 300
million) Private Placement placed in December 2006 with U.S.
institutional investors was funded in February 2007. 14 U.S.
institutional investors participated in the transaction. The
placement has been hedged through Cross Currency and Interest Rate
Swaps into a fixed interest rate euro loan. Its interest rate varies
between 4.525 and 4.756 percent depending on the maturity, which
varies between 7 and 12 years.
New Products and Product Development
In January-June 2007, Cargotec's research and product development
expenditure was EUR 23.1 (1-6/2006: 15.1) million, representing 1.6
(1.2) percent of sales.
Hiab introduced a new XR 26 hooklift system specifically used in
heavy 4-5-axle truck applications for waste management and recycling
industries. The new MOFFETT M4 truck-mounted forklift model was
introduced in the European market. The model has been ordered
particularly for short-range local transports and for the gas
industry. In U.S. Hiab launched a new truck-mounted forklift,
Princeton PB 45 that replaces the model produced earlier in Europe.
This truck-mounted forklift is typically used for supplying
lightweight building materials and transferable lawn.
In the second quarter, Kalmar introduced a remodeled E-One+ RTG
crane. The environmentally friendly E-One RTGs were introduced in
2005. They are electrically operated and do not have any hydraulics.
The new E-One+ model brings improvements to maintenance, operating
safety and assembly of the unit. A stabilizer system for container
spreaders, Max Stable, was also introduced to the market. It speeds
up spreader movement and increases its precision. Furthermore, the
company introduced a new generation of terminal tractors with the
CAN-BUS monitoring system. It combines the functions of terminal
tractors onto a single monitor screen. The CAN-BUS system speeds up
the operation of terminal tractors. In May, Kalmar completed a
project in Port of New Jersey where 183 straddle carriers of Maher
Terminals were fitted with the Smartpath® container position
verification system and Fleetview monitoring system developed by
Kalmar.
MacGREGOR continued the development of a new control system for ship
cranes. The first installations of the control system will take place
in early 2008. The first electronic operated ship crane was installed
onboard a ship into use during the reporting period.
Capital Expenditure
Cargotec's capital expenditure for January-June, excluding
acquisitions and customer financing, totaled EUR 20.7 (1-6/2006:
25.1) million. Customer financing investments were EUR 15.4 (9.4)
million.
In May, Kalmar opened a new automation development center at Tampere,
Finland. The center tests the functionality of intelligent solutions
developed by Kalmar before the equipment is delivered to the
customer. Furthermore, the center has a simulator for training
machine operators on Kalmar's remote monitoring systems. The
development center's first testing project is the automatic stacking
crane system ordered by HHLA, the largest operator in the port of
Hamburg, Germany.
Hiab agreed during the reporting period to centralize its European
truck-mounted forklift production to the Dundalk unit in Ireland. The
Oude Leije production unit in the Netherlands will be converted into
a technical center serving European customers.
MacGREGOR's Offshore division is investing in a new production unit
to be built in Tianjin, China. The production unit will start
operating in the end of 2007. A new production unit for hatch covers
is under construction with the Vietnamese company Vinashin and is
scheduled to start operations in the second half of 2008. Vinashin
and MacGREGOR established a joint venture early in the year.
Acquisitions
Cargotec continued the strategic growth plan by completing 12
acquisitions in the first half of the year.
In February, a contract was signed to acquire the Indian company
Indital Construction Machinery Ltd. based in Bangalore. The
acquisition creates manufacturing presence for Cargotec in India and
supports the growing sales activities of all three of Cargotec's
business areas in the region. The company employs approximately 60
people and its sales are approximately EUR 8 million. Cargotec has a
95 percent holding in Indital. The acquisition was finalized in
April.
Hiab's Acquisitions
In May, Hiab signed a contract to acquire the Estonian company Balti
ES. The company is based in Narva and manufactures steel structures
and components. The acquisition supports Hiab's and Kalmar's
increasing demand for components and reinforces the supplier network
and price competitiveness of both companies. Balti ES employs
approximately 600 people and posted sales of approximately EUR 14
million in 2006. The acquisition was finalized in June.
In January, Hiab signed an agreement of intent to acquire the sales,
service and installation units of its current distributor Berger in
the Czech Republic, Slovakia, Hungary and Croatia. The annual sales
of the operations are approximately EUR 16 million, and the units
employ approximately 75 people. The acquisition was finalized in May.
In January, a contract was signed to acquire a majority holding in BG
Crane Pty. Ltd., the Australian importer of Hiab equipment,
previously an associated company. The company employs approximately
100 people and had sales of approximately EUR 20 million in 2006. The
deal was finalized in February.
Kalmar's Acquisitions
In April, Kalmar signed a contract to acquire the remaining minority
share in Kalmar Asia Pacific Ltd. Kalmar now fully owns the company.
In February, Kalmar acquired the U.S. based service company Port
Equipment Service, Inc. (PES). PES employs 56 people and had sales of
approximately EUR 4 million in 2006. The acquisition strengthens
Kalmar's service business particularly in ports and railroad
terminals on the U.S. East Coast.
In January, Kalmar acquired the Slovenian service company Tagros
d.o.o. Tagros services container handling equipment and forklifts.
This acquisition enables Kalmar to build up its service and sales
activities in Slovenia and the Northern Balkan Peninsula. Tagros
employs approximately 35 people and had sales of approximately EUR 2
million in 2006.
In January, the company also agreed to acquire Truck och Maskin i
Örnsköldsvik AB in Northern Sweden. The acquisition strengthens
Kalmar's sales and service network for industrial customers in the
wood handling segment. Truck och Maskin employs approximately 100
people and had sales of approximately EUR 14 million in the
accounting period that ended on April 30, 2006. The acquisition was
finalized in February.
In December 2006, a contract was signed to acquire Kalmar's Spanish
distributor Kalmar España. The acquisition was finalized in April.
MacGREGOR's Acquisitions
During the reporting period, MacGREGOR expanded its operations into
the offshore segment through three acquisitions.
In May, a contract was signed to acquire Vestnorsk Hydraulikkservice
AS (VNH) of Norway. VNH specializes in the maintenance of hydraulic
systems and turnkey deliveries of offshore solutions for oil drilling
support vessels and other types of ships. VNH's sales amount to
approximately EUR 5 million. The company employs 21 people. The
acquisition was finalized in June.
In March, MacGREGOR agreed to acquire the Norwegian offshore and sub
sea load handling system supplier Hydramarine AS. Hydramarine
specializes in the development of hydraulic and electrical deck
machinery equipment such as cranes. In 2006, Hydramarine had sales of
EUR 63 million and employed 150 people. MacGREGOR acquired 90 percent
of the company with the remaining shares being owned by the
employees. The acquisition was finalized in April.
In March, MacGREGOR also signed a contract to acquire the Singaporean
company Plimsoll Corporation Pte Ltd. It is the leading supplier of
equipment for oil drilling and gas vessels and other types of ships
in the Asia Pacific region. The product range includes among others
winches and cranes. Plimsol's sales in 2006 totaled approximately EUR
43 million. The company employs approximately 600 people. MacGREGOR
acquired 90 percent of the company with the remaining shares being
owned by the employees. The acquisition was finalized in April.
In June, MacGREGOR established a new division, MacGREGOR Offshore.
The division consists of Hydramarine and Plimsoll and concentrates on
achieving synergy benefits and expanding the business. The new
division employs more than 700 people. The offshore division enjoyed
a healthy order intake during the second quarter of 2007. The
equipment ordered will be delivered during 2007-2010 for ship yards
building offshore vessels in Norway, Singapore, China, Malaysia,
Japan and Middle East. The operations of the service companies
Vestnorsk Hydraulikkservice and Grampian support the new division.
Personnel
At the end of the reporting period, Cargotec employed 10,962 (June
30, 2006: 7,970) people. Acquisitions during the period increased the
number of personnel by 1,835 people. Hiab employed 4,483 (3,617)
people, Kalmar 4,341 (3,378), and MacGREGOR 2,066 (927).
Of Cargotec's total employees, 14 percent were located in Finland, 22
percent in Sweden, and 30 percent in the rest of Europe. North and
South American personnel represented 12 percent, Asia Pacific 21
percent, and the rest of the world 1 percent of total employees.
Shares and Stock Options
Cargotec's share capital on June 30, 2007 was EUR 64,118,679. The
share capital was increased during the reporting period through stock
options. At the beginning of the year, the share capital was EUR
64,046,460. On June 30, 2007, the number of Cargotec's listed class B
shares totaled 54,592,590 while that of its unlisted class A shares
totaled 9,526,089. The remaining 2005A and 2005B stock options may be
used to subscribe for a further 290,331 class B shares, thereby
increasing the share capital by EUR 290,331.
During the first half of the year, the trading volume of Cargotec
class B shares totaled around 26 million at a total value of
approximately EUR 1,197 million. The closing price for class B shares
on June 30, 2007 was EUR 45.67. The highest price during the
reporting period was EUR 49.60 and the lowest EUR 40.69. The market
capitalization, with the unlisted class A shares valued at the
average price of the class B shares on the last day of the period,
amounted to EUR 2,900 million, excluding class B treasury shares held
by the company.
The amount of shares owned by the Executive Board either directly or
indirectly grew significantly as Moving Cargo Oy, a company
jointly-owned by the Executive Board, acquired 84,354 shares during
the second quarter of 2007. The ownership of the Executive Board on
June 30, 2007 totaled 0.2 percent of all Cargotec shares.
Cargotec's Financial Targets and Incentive Program for Key Managers
In January, Cargotec published its new financial targets and a
share-based incentive program for the key managers for the years
2007-2011. The purpose of the program encouraging share ownership is
to align the interests of key managers to Cargotec's strategy and
financial targets as well as contribute to making them long-term
shareholders of the company. The incentive program covers some 60
individuals. The program offers key managers a possibility to earn a
reward in Cargotec class B shares based on accomplishment of set
targets.
Cargotec's financial targets are the following: annual net sales
growth exceeding 10 percent (incl. acquisitions), raising the
operating profit margin to 10 percent, and maintaining the gearing
below 50 percent. The targets have been set for the years 2007-2011.
The incentive program consists of four earnings periods, of which the
first is two years and the following three periods one year each. The
Board of Directors decides on the target group of the earnings period
and their maximum reward at the beginning of each earnings period.
Potential rewards from the incentive program during 2007-2011 are
based on achievement of five-year net sales and operating profit
targets as defined in Cargotec's strategy. The rewards will be paid
during 2009-2012 in both class B shares and cash. The cash portion is
dedicated to cover possible taxes and tax-related payments resulting
from the reward. The shares distributed as reward will contain a
prohibition to hand over or sell the shares within one year of the
end of an earnings period with the exception of the final earnings
period when no prohibitions are included. The maximum amount to be
paid out as shares is 387,500 class B shares currently held by the
company as treasury shares.
Changes in Cargotec's Executive Board
Pekka Vauramo, M.Sc. (Eng.) was appointed Kalmar's President as of
October 1, 2007. Vauramo will start at Cargotec on September 1, 2007.
Kalmar's current President Christer Granskog will retire by the end
of 2007 in accordance with his service contract.
Decisions Taken at Cargotec Corporation's Annual General Meeting
Cargotec Corporation's Annual General Meeting was held on February
26, 2007 in Helsinki. The meeting approved the financial statements
and consolidated financial statements. The meeting granted discharge
from liability to the President and CEO and the members of the Board
of Directors for the accounting period January 1-December 31, 2006.
The Annual General Meeting approved the Board's proposal of a
dividend of EUR 0.99 for each of the 9,526,089 class A shares and EUR
1.00 for the 53,815,646 outstanding class B shares. The meeting also
approved the remuneration of the Board members as well as that of the
auditors.
The number of members of the Board of Directors was confirmed at six
according to the proposal of Cargotec's Nomination and Compensation
Committee. Carl-Gustaf Bergström, Henrik Ehrnrooth, Tapio Hakakari,
Ilkka Herlin, Peter Immonen and Karri Kaitue were re-elected as
members of the Board of Directors.
Authorized public accountants Johan Kronberg and
PricewaterhouseCoopers Oy were elected as auditors according to the
proposal of the Audit Committee of Cargotec Corporation's Board of
Directors.
Authorizations Granted by the Annual General Meeting
The Annual General Meeting authorized the Board of Directors of
Cargotec to decide to repurchase the Company's own shares with assets
distributable as profit. The shares may be repurchased in order to
develop the capital structure of the Company, finance or carry out
possible acquisitions, implement the Company's share-based incentive
plans, or to be transferred for other purposes or to be cancelled.
Altogether no more than 6,400,000 own shares may be repurchased, of
which no more than 952,000 are class A shares and 5,448,000 are class
B shares. The above-mentioned amounts include the 704,725 class B
shares already in the Company's possession. This authorization
remains in effect for a period of 18 months from the date of decision
of the Annual General Meeting.
In addition, the Annual General Meeting authorized the Board of
Directors to decide on the distribution of any shares repurchased.
The Board of Directors is authorized to decide to whom and in which
order the shares will be distributed. The Board of Directors may
decide on the distribution of repurchased shares otherwise than in
proportion to the existing pre-emptive right of shareholders to
purchase the Company's own shares. The shares may be used as
compensation in acquisitions and in other arrangements as well as to
implement the Company's share-based incentive plans in the manner and
to the extent decided by the Board of Directors. The Board of
Directors has also the right to decide on the distribution of the
shares in public trading at the Helsinki Stock Exchange to be used as
compensation in possible acquisitions. This authorization remains in
effect for a period of 18 months from the date of decision of the
Annual General Meeting.
Organization of the Board of Directors
In its organizing meeting Cargotec's Board of Directors elected Ilkka
Herlin to continue as Chairman of the Board and Henrik Ehrnrooth to
continue as Deputy Chairman. Cargotec's Senior Executive Vice
President and CFO Kari Heinistö continues to act as secretary to the
Board of Directors.
The Board of Directors re-elected among its members Ilkka Herlin,
Peter Immonen and Karri Kaitue as members of the Audit Committee.
Karri Kaitue was elected to continue as Chairman of the Audit
Committee. Board members Carl-Gustaf Bergström, Tapio Hakakari, Ilkka
Herlin and Peter Immonen were re-elected to the Nomination and
Compensation Committee. Ilkka Herlin was elected to continue as
chairman of the Nomination and Compensation Committee. Board members
Tapio Hakakari, Ilkka Herlin and Peter Immonen were elected to the
Working Committee. The Board elected Ilkka Herlin as chairman of the
Working Committee.
Share Repurchases
Cargotec's Board of Directors decided to exercise the authorization
of the Annual General Meeting to repurchase the Company's own shares.
The maximum amount of repurchased own shares will be less than 10
percent of the Company's share capital and total voting rights.
Class B shares will be purchased at public trading in the Helsinki
Stock Exchange at the market price. Class A shares will be purchased
outside the Stock Exchange at the price equivalent to the average
price of class B shares paid in the Helsinki Stock Exchange on the
purchase date. Share repurchases will be published on the transaction
days through stock exchange announcements.
No shares were repurchased during the reporting period.
Short-term Risks and Uncertainties
Cargotec's principal short-term risks and uncertainties are related
to availability of components and the U.S. economic development.
Cargotec has outsourced a significant proportion of its component
production and part of its assembly operations. Cargotec strives to
anticipate its component needs so that subcontractors can flexibly
meet demand. Due to generally high demand for many of the components
used by Cargotec their availability remains critical.
The U.S. economy especially affects the demand for Cargotec's load
handling equipment. At present, load handling equipment demand from
the building materials supply industry is clearly below the 2006
level. The market development remains uncertain, but is not expected
to improve for the coming few months.
Cargotec has made a significant number of acquisitions during the
past 12 months. Although these acquisitions are relatively small in
size and geographically dispersed, integrations always involve
uncertainty factors.
Events after the Reporting Period
In December 2006, Cargotec agreed to acquire the Italian company CVS
Ferrari. The German competition authorities are demanding remedy
actions, which Cargotec believes are disproportionate to the impact
the contemplated transaction would have on the competitive
environment. Cargotec and CVS Ferrari are cooperating in order to
find a satisfactory solution in order to finalize the acquisition.
However, for the time being both Cargotec and CVS Ferrari continue to
be independent competitors pursuing their own business.
Outlook
General market activity is expected to continue healthy and order
intake to grow by close to 20 percent in 2007. Together with the
strong order book this will enable Cargotec to clearly exceed its
growth target this year. Sales growth for 2007 is estimated to be
approximately 15 percent.
Cargotec is, in accordance with its plans, focusing in 2007 on growth
and efficiency related investments, which burden this year's result.
The investments are expected to enable profitable growth as per the
five year strategy. Cargotec's operating profit margin for the
remainder of the year is expected to stay below 8 percent.
Helsinki, July 19, 2007
Cargotec Corporation
Board of Directors
This interim report is unaudited.
CARGOTEC'S INTERIM REPORT FOR JANUARY-JUNE 2007
CONDENSED CONSOLIDATED INCOME STATEMENT
MEUR 4-6/2007 4-6/2006 1-6/2007 1-6/2006 1-12/2006
Sales 743.4 661.2 1,437.3 1,275.1 2,597.1
Cost of goods
sold -587.5 -514.8 -1,125.6 -995.7 -2,042.7
Gross profit 156.0 146.4 311.8 279.4 554.4
Gross profit,
% 21.0 % 22.1 % 21.7 % 21.9 % 21.3 %
Gain on the
sale of
property - - - - 17.8
Costs and
expenses -96.3 -76.3 -182.2 -148.6 -292.2
Depreciation -13.4 -9.1 -25.4 -18.9 -40.5
Operating
profit 46.2 61.0 104.1 111.9 239.5
Operating
profit, % 6.2 % 9.2 % 7.2 % 8.8 % 9.2 %
Share of
associated
companies'
income 0.1 0.1 0.2 0.5 0.9
Financing
income and
expenses -4.4 -2.6 -7.8 -5.5 -8.4
Income before
taxes 41.9 58.5 96.5 106.9 232.0
Income before
taxes, % 5.6 % 8.9 % 6.7 % 8.4 % 8.9 %
Taxes -6.4 -17.7 -21.6 -32.2 -65.9
Net income
for the
period 35.5 40.8 74.9 74.7 166.1
Net income
for the
period, % 4.8 % 6.2 % 5.2 % 5.9 % 6.4 %
Attributable
to:
Equity
holders of
the Company 35.1 40.6 74.5 74.0 163.9
Minority
interest 0.4 0.2 0.4 0.7 2.2
Total 35.5 40.8 74.9 74.7 166.1
Earnings per
share for
profit
attributable
to the equity
holders of
the
Company:
Basic
earnings per
share, EUR 0.55 0.64 1.17 1.16 2.57
Diluted
earnings per
share, EUR 0.55 0.63 1.17 1.15 2.56
Adjusted
basic
earnings per
share, EUR - - - - 2.37 *
* Excluding gain on the sale of property after taxes
CONDENSED CONSOLIDATED BALANCE SHEET
ASSETS
MEUR 30.6.2007 30.6.2006 31.12.2006
Non-current assets
Intangible assets 747.2 516.4 580.5
Tangible assets 252.6 191.0 217.6
Loans receivable and other
interest-bearing assets 1) 2.2 0.4 0.1
Investments 3.9 3.1 4.0
Assets held for sale - 9.1 -
Non-interest-bearing assets 63.1 53.5 58.6
Total non-current assets 1,069.0 773.5 860.8
Current assets
Inventories 647.3 513.2 528.9
Loans receivable and other
interest-bearing assets 1) 0.3 0.2 0.3
Accounts receivable and other
non-interest-bearing assets 582.1 443.1 473.7
Cash and cash equivalents 1) 115.2 101.3 124.3
Total current assets 1,344.9 1,057.8 1,127.2
Total assets 2,413.9 1,831.3 1,988.0
EQUITY AND LIABILITIES
MEUR 30.6.2007 30.6.2006 31.12.2006
Equity
Shareholders' equity 876.6 802.1 868.8
Minority interest 5.1 6.8 8.0
Total equity 881.8 808.9 876.8
Non-current liabilities
Loans 1) 417.8 192.2 195.0
Deferred tax liabilities 33.9 19.9 30.5
Provisions 28.8 17.1 30.3
Pension benefit and other
non-interest-bearing liabilities 61.6 53.3 55.2
Total non-current liabilities 542.0 282.5 311.0
Current liabilities
Loans 1) 44.1 39.1 37.2
Provisions 43.0 46.8 42.6
Accounts payable and other
non-interest-bearing liabilities 903.1 654.0 720.4
Total current liabilities 990.1 739.9 800.2
Total equity and liabilities 2,413.9 1,831.3 1,988.0
1) Included in interest-bearing
net debt
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to the equity holders of the
company
Share Trans- Fair Mino-
pre- Trea- lation value Re- rity
Share mium sury differ- reser- tained inte- Total
MEUR capital account shares ences ve earnings Total rest equity
Equity on
31.12.2005 63.9 95.1 -5.0 4.9 -10.3 611.4 760.0 7.2 767.2
Cash flow
hedges 19.6 19.6 -0.1 19.5
Trans-
lation
differences -10.5 -10.5 -0.6 -11.1
Share-
based
incentives,
value of
recei-
ved
services 0.1 0.1 0.1
Total net
income
recognised
directly
in equity - - - -10.5 19.6 0.1 9.2 -0.7 8.5
Net
income
for the
period 74.0 74.0 0.7 74.7
Total
recognised
income and
expenses
for
the period - - - -10.5 19.6 74.0 83.1 0.0 83.1
Dividends
paid -41.3 -41.3 -0.4 -41.7
Shares
subscribed
with
options 0.0 0.3 0.3 0.3
Acquisition
of treasury
shares 0.0 0.0 0.0
Other
changes - 0.0 0.0
Equity on
30.6.2006 63.9 95.4 -5.0 -5.6 9.3 644.1 802.1 6.8 808.9
Equity on
31.12.2006 64.0 96.0 -23.9 -12.0 10.5 734.2 868.9 8.0 876.8
Gain/loss
on
cash flow
hedges
booked
to equity -4.0 -4.0 0.0 -4.0
Gain/loss
on
cash flow
hedges
transferred
to IS -1.1 -1.1 -1.1
Trans-
lation
differences 0.2 0.2 -0.3 -0.2
Share-based
incentives,
value of
recei-
ved
services 0.9 0.9 0.9
Total net
income
recognised
directly in
equity - - - 0.2 -5.1 0.9 -4.1 -0.3 -4.4
Net income
for the
period 74.5 74.5 0.4 74.9
Total
recognised
income and
expenses
for
the period - - - 0.2 -5.1 75.3 70.4 0.0 70.5
Dividends
paid -63.2 -63.2 -0.4 -63.7
Shares
subscribed
with
options 0.1 0.5 0.6 0.6
Other
changes 0.0 -2.5 -2.5
Equity on
30.6.2007 64.1 96.6 -23.9 -11.9 5.4 746.3 876.6 5.1 881.8
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
MEUR 1-6/2007 1-6/2006 1-12/2006
Net income for the period 74.9 74.7 166.1
Capital gains - - -17.8
Depreciation 25.4 18.9 40.5
Other adjustments 29.3 37.2 73.7
Change in working capital -46.2 -17.8 -12.7
Cash flow from operations 83.4 113.0 249.8
Cash flow from financial items and
taxes -47.1 -22.6 -51.1
Cash flow from operating activities 36.2 90.4 198.7
The gain from the sale of property - - 31.3
Acquisitions -163.6 -26.6 -89.1
Cash flow from investing activities,
other items -36.6 -24.5 -58.0
Cash flow from investing activities -200.2 -51.1 -115.8
Acquisition of treasury shares - 0.0 -18.9
Proceeds from share subscriptions 0.6 0.3 1.1
Dividends paid -64.1 -41.3 -41.3
Proceeds from long-term borrowings 226.9 0.0 0.1
Repayments of long-term borrowings -8.8 -5.6 -25.9
Proceeds from short-term borrowings 9.8 0.4 15.9
Repayments of short-term borrowings -12.1 -7.8 -7.6
Cash flow from financing activities 152.3 -54.0 -76.6
Change in cash -11.7 -14.7 6.3
Cash, cash equivalents and bank
overdrafts at the beginning
of period 114.5 111.2 111.2
Effect of exchange rate changes -0.4 -1.9 -3.0
Cash, cash equivalents and bank
overdrafts at the end
of period 102.4 94.6 114.5
Bank overdrafts at the end of period 12.8 6.7 9.8
Cash and cash equivalents at the end
of period 115.2 101.3 124.3
KEY FIGURES
1-6/2007 1-6/2006 1-12/2006
Equity/share EUR 13.82 12.58 13.72
Interest-bearing net debt MEUR 344.3 129.4 107.5
Total equity/total assets % 40.4 47.5 47.6
Gearing % 39.0 16.0 12.3
Return on equity % 17.0 19.0 20.2
Return on capital employed % 17.7 22.4 23.1
SEGMENT REPORTING
Sales by geographical segment, MEUR 1-6/2007 1-6/2006 1-12/2006
EMEA 799 684 1,368
Americas 344 365 720
Asia Pacific 295 226 509
Total 1,437 1,275 2,597
Sales by geographical segment, % 1-6/2007 1-6/2006 1-12/2006
EMEA 55.6 % 53.7 % 52.7 %
Americas 23.9 % 28.6 % 27.7 %
Asia Pacific 20.5 % 17.8 % 19.6 %
Total 100.0 % 100.0 % 100.0 %
Sales, MEUR 1-6/2007 1-6/2006 1-12/2006
Hiab 485 467 914
Kalmar 653 593 1,203
MacGREGOR 300 217 482
Internal sales -1 -1 -2
Total 1,437 1,275 2,597
Operating profit, MEUR 1-6/2007 1-6/2006 1-12/2006
Hiab 40.9 45.9 86.0
Kalmar 50.8 56.0 111.7
MacGREGOR 22.0 16.3 35.9
Corporate administration and other -9.5 -6.4 -11.9
Operating profit from operations 104.1 111.9 221.7
Gain on the sale of property - - 17.8
Total 104.1 111.9 239.5
Operating profit, % 1-6/2007 1-6/2006 1-12/2006
Hiab 8.4 % 9.8 % 9.4 %
Kalmar 7.8 % 9.4 % 9.3 %
MacGREGOR 7.3 % 7.6 % 7.5 %
Cargotec, operating profit from
operations 7.2 % 8.8 % 8.5 %
Cargotec 7.2 % 8.8 % 9.2 %
Orders received, MEUR 1-6/2007 1-6/2006 1-12/2006
Hiab 508 498 946
Kalmar 760 697 1,282
MacGREGOR 597 396 684
Internal orders received -1 -1 -2
Total 1,864 1,591 2,910
Order book, MEUR 30.6.2007 30.6.2006 31.12.2006
Hiab 238 216 215
Kalmar 693 615 593
MacGREGOR 1,314 713 813
Internal order book 0 0 0
Total 2,244 1,544 1,621
Capital expenditure, MEUR 1-6/2007 1-6/2006 1-12/2006
In fixed assets (excluding
acquisitions) 20.6 24.6 46.1
In leasing agreements 0.1 0.5 0.5
In customer financing 15.4 9.4 22.2
Total 36.2 34.5 68.8
Number of employees at the end of
period 30.6.2007 30.6.2006 31.12.2006
Hiab 4,483 3,617 3,647
Kalmar 4,341 3,378 3,705
MacGREGOR 2,066 927 1,117
Corporate administration 72 48 47
Total 10,962 7,970 8,516
Average number of employees 1-6/2007 1-6/2006 1-12/2006
Hiab 3,765 3,509 3,571
Kalmar 4,030 3,265 3,415
MacGREGOR 1,590 913 994
Corporate administration 62 45 46
Total 9,447 7,732 8,026
NOTES
Taxes in income statement
MEUR 1-6/2007 1-6/2006 1-12/2006
Current year tax expense 33.3 35.1 66.7
Deferred tax expense -3.5 -1.6 -0.3
Tax expense for previous years -8.2 -1.3 -0.5
Total 21.6 32.2 65.9
Commitments
MEUR 30.6.2007 30.6.2006 31.12.2006
Guarantees 1.0 0.1 0.5
Dealer financing 8.7 11.3 8.5
End customer financing 6.6 7.0 6.7
Operating leases 57.5 32.0 38.1
Other contingent liabilities 6.5 4.0 3.9
Total 80.2 54.4 57.7
Fair values of
derivative
financial
instruments
Positive Negative Net fair Net fair Net fair
fair value fair value value value value
MEUR 30.6.2007 30.6.2007 30.6.2007 30.6.2006 31.12.2006
FX forward
contracts, cash
flow hedges 19.0 12.2 6.8 10.6 18.6
FX forward
contracts,
non-hedge
accounted 10.0 1.4 8.7 0.3 -9.1
Interest rate
swaps, non-hedge
accounted - - - -0.2 0.0
Cross currency
and interest
rate swaps, cash
flow hedges 2.9 3.6 -0.7 - -0.7
Total 31.9 17.2 14.7 10.7 8.8
Non-current
portion:
FX forward
contracts, cash
flow hedges 3.5 3.5 0.0 -0.3 2.7
Cross currency
and interest
rate swaps, cash
flow hedges 2.9 3.6 -0.7 - -0.7
Non-current
portion 6.4 7.1 -0.7 -0.3 2.0
Current portion 25.5 10.1 15.4 11.0 6.8
Nominal values of derivative financial
instruments
MEUR 30.6.2007 30.6.2006 31.12.2006
FX forward contracts 1,823.8 1,650.1 1,752.7
Interest rate swaps - 30.0 10.0
Cross currency and interest rate swaps 225.7 - 225.7
Total 2,049.5 1,680.1 1,988.4
ACQUISITIONS 2007
In January-June 2007, Cargotec made several acquisitions supporting
its strategy. These acquisitions were individually immaterial.
In January, Hiab made an agreement to acquire the majority of its
Australian importer, BG Crane Pty. Ltd. The acquisition was finalized
in February. In January, an agreement of intent was signed to acquire
the sales, service and installation units of Hiab's current
distributor Berger in the Czech Republic, Slovakia, Hungary and
Croatia. The acquisition was finalized in May. Hiab signed a contract
in May to acquire the Estonian company Balti ES. The acquisition was
finalized in June.
Kalmar acquired Tagros d.o.o., a Slovenia-based service company in
January. Kalmar signed also an agreement in January to acquire Truck
och Maskin i Örnsköldsvik AB, a Swedish company. The acquisition was
finalized in February. In February, Kalmar acquired the assets and
business of Port Equipment Service, Inc., a U.S. based service
company. In February, a contract was signed to acquire the Indian
company Indital Construction Machinery Ltd. The acquisition was
finalized in April. In April, Kalmar acquired the remaining minority
share of Kalmar Asia Pacific Ltd. In December 2006, a contract was
signed to acquire Kalmar's Spanish distributor Kalmar España. The
acquisition was finalized in April.
In March, MacGREGOR agreed to acquire 90 percent of the Norwegian
Hydramarine AS. The acquisition was finalized in April. In March,
MacGREGOR also signed a contract to acquire 90 percent of the
Singaporean company Plimsoll Corporation Pte Ltd. The acquisition was
finalized in April. The accounting of these two business combinations
also includes the minority shares, which include a redemption
obligation. The debt-free acquisition price of these two business
combinations was approximately EUR 122 million and the goodwill
recognized according to the preliminary calculations was EUR 111
million. In May, a contract was signed to acquire Vestnorsk
Hydraulikkservice AS of Norway. The acquisition was finalized in
June.
Management estimates that the consolidated sales for Jan 1-Jun 30,
2007 would have been EUR 1,480 million, if the acquisitions had been
completed on Jan 1, 2007.
The table below summarizes the acquisitions completed in January-June
2007. The business combinations were accounted as preliminary as the
determination of fair values to be assigned to the assets,
liabilities and contingent liabilities were not yet finalized.
Net fair values of Assets and
identifiable liabilities
assets and immediately
liabilities of before the
the acquired business
businesses combination
MEUR
Other intangible assets 13.4 0.2
Property, plant and equipment 25.3 25.0
Inventories 40.5 40.5
Non-interest-bearing assets 57.1 57.1
Interest-bearing assets 0.4 0.4
Cash and cash equivalents 6.6 6.6
Interest-bearing liabilities -18.1 -18.1
Other non-interest-bearing liabilities -93.0 -88.4
Acquired net assets 32.1 23.3
Transaction price 188.1
Costs related to acquisitions 3.0
Goodwill 159.0
Transaction price paid in cash 162.2
Costs related to acquisitions 3.0
Cash and cash equivalents in acquired
businesses -2.5
Total cash outflow from acquisitions 162.8
ACCOUNTING PRINCIPLES
The interim report has been prepared according to the International
Accounting Standard 34: Interim Financial Reporting. The accounting
policies adopted are consistent with those of the 2006 annual
financial statements. All figures in the accounts have been rounded
and consequently the sum of individual figures may deviate from the
presented sum figure.
Adoption of new or revised IFRS standards and interpretations in 2007
In January 2007 Cargotec has adopted the following new and amended
standards and interpretations by the IASB published in 2006:
- IFRS 7, Financial Instruments: Disclosures
- IAS 1 Amendment, Capital Disclosures
- IFRIC 10, Interim Financial Reporting and Impairment
- IFRIC 11, IFRS 2 - Group and Treasury Share Transactions
The adoption of the new and revised standards and interpretations
does not have a material effect on the interim financial statements.
Reclassification of balance sheet items
Division of derivative assets and liabilities into current and
non-current has been applied in the 2006 annual financial statements.
Derivative instruments, for which hedge accounting is applied, and
for which the underlying cash flow matures after twelve months, are
booked as non-current assets and liabilities, other derivative
instruments are booked as current assets and liabilities. In previous
financial statements all derivatives have been included in current
assets and liabilities. The comparative figures of June 30, 2006 have
been restated accordingly.
Retrospective adjustment of final accounting of the acquisitions
In the 2006 financial statements the impact of final accounting of
the acquisitions of 2005 was recognized retrospectively for the
period Jan 1-Dec 31, 2006. The comparative figures of June 30, 2006
have been restated accordingly.
Share-based payments
The share-based incentive scheme for top management approved by the
Board of Directors in July 2005 ended in March 2007. The members of
the scheme received 20,660 Cargotec 2005B-option rights and in cash
65,000 synthetic option rights. The fair value of a synthetic option
was EUR 28.22 at payment day.
In January 2007, Cargotec published a new share-based incentive
scheme for the company's key managers for the years 2007-2011. The
rewards will be paid during 2009-2012 in both class B shares and
cash. The cash portion is dedicated to cover possible taxes and
tax-related payments resulting from the total reward. Shares
distributed as reward will contain a prohibition to hand over or sell
the shares within one year of the end of the earnings period with the
exception of the final earnings period when no prohibitions are
included. The shares will be lost if the holder leaves the company
before the prohibition period ends. At the end of June 2007 the
earnings period 2007-2008 involves 61 persons. If they were to
receive the maximum number of shares in accordance with the scheme, a
total of 149,150 shares, their shareholding obtained via the program
would amount to 0.08 percent of the total voting rights of Company's
class A and B shares. The incentive scheme is booked and valued
according to the Share-based payments accounting principle presented
in the annual financial statements of 2006.
CALCULATION OF KEY FIGURES
Total equity attributable to the shareholders of the
parent company
Equity / share = ______________________________________________________
Share issue adjusted number of shares at the end
of period (excluding treasury shares)
Interest-bearing
net debt = Interest-bearing debt - interest-bearing assets
Total equity
Total equity / 100
total assets (%) = x ______________________________________________________
Total assets - advances received
Interest-bearing debt - interest-bearing assets
100
Gearing (%) = x ______________________________________________________
Total equity
Net income for period
Return on equity 100
(%) = x ______________________________________________________
Total equity (average for period)
Income before taxes + interest and other financing
expenses
Return on
capital employed 100
(%) = x ______________________________________________________
Total assets - non-interest-bearing debt (average for
period)
Net income for the period attributable to the
shareholders of the parent company
Basic earnings /
share = ______________________________________________________
Share issue adjusted weighted average number of shares
during period (excluding treasury shares)
QUARTERLY FIGURES
Cargotec Q2/2007 Q1/2007 Q4/2006 Q3/2006 Q2/2006
Orders received MEUR 949 915 716 603 786
Order book MEUR 2,244 1,811 1,621 1,594 1,544
Sales MEUR 743 694 697 625 661
Operating profit MEUR 46.2 57.9 57.7 52.1* 61.0
Operating profit % 6.2 8.3 8.3 8.3* 9.2
Basic earnings/share EUR 0.55 0.62 0.61 0.60* 0.64
Hiab Q2/2007 Q1/2007 Q4/2006 Q3/2006 Q2/2006
Orders received MEUR 244 264 241 207 232
Order book MEUR 238 237 215 215 216
Sales MEUR 245 240 239 208 237
Operating profit MEUR 16.6 24.3 22.7 17.4 23.4
Operating profit % 6.8 10.1 9.5 8.4 9.9
Kalmar Q2/2007 Q1/2007 Q4/2006 Q3/2006 Q2/2006
Orders received MEUR 367 393 327 258 346
Order book MEUR 693 651 593 581 615
Sales MEUR 330 324 321 290 309
Operating profit MEUR 24.0 26.8 28.2 27.5 31.0
Operating profit % 7.3 8.3 8.8 9.5 10.0
MacGREGOR Q2/2007 Q1/2007 Q4/2006 Q3/2006 Q2/2006
Orders received MEUR 338 259 149 139 208
Order book MEUR 1,314 923 813 798 713
Sales MEUR 169 131 138 127 116
Operating profit MEUR 11.4 10.6 9.7 9.9 10.2
Operating profit % 6.7 8.1 7.0 7.8 8.8
* Excluding gain on the sale of property
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